China’s Sinopec buys 30 pct of Petrogal Brasil

30 March 2012

Chinese oil group Sinopec Thursday officially took a 30 percent stake in the capital of Petrogal Brasil, which is responsible for the oil exploration and production activities of Portugal’s Galp Energia in Brazil, following and investment of US$4.8 billion, Portuguese group Galp Energia said in Lisbon.

In a statement published by the Portuguese stock market regulator, CMVM, the capital increase of Petrogal Brasil has now been concluded and Sinopec subscribed the entire US$4.8 billion in Petrogal Brasil and other related companies.

Also according to the statement, Sinopec provide Petrogal Brasil with a shareholder loan of US$360 million, which will be used to pay off shareholder loans from Galp Energia in the same amount, which means that in total Galp Energia has netted US$5.2 billion from the transaction.
The Sinopec group is the biggest oil and petrochemical products company in China and the second in terms of oil production and its stake in Galp follows Chinese state company Sinopec acquiring a unit of Repsol YPF in Brazil for US$7.1 billion, in China’s biggest oil investment deal. (macauhub)